How are PARR covered call max profit and max loss calculated?

Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the PARR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 59.80%), the computed maximum profit is $636.00 per contract and the computed maximum loss is -$5,363.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PARR covered call?

The breakeven for the PARR covered call priced on this page is roughly $53.64 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current PARR market-implied 1-standard-deviation expected move is approximately 17.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PARR implied volatility affect this covered call?

PARR ATM IV is at 59.80% with IV rank near 57.93%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

PARR Covered Call Strategy

PARR (Par Pacific Holdings, Inc.), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through three segments: Refining, Retail, and Logistics. The Refining segment owns and operates three refineries that produces ultra-low sulfur diesel, gasoline, jet fuel, marine fuel, distillate, asphalt, low sulfur fuel oil, and other associated refined products primarily for consumption in Hawaii, Pacific Northwest, Wyoming, and South Dakota. The Retail segment operates 119 fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho under the Cenex, nomnom, and Zip Trip brand names. The Logistics segment owns and operates terminals, pipelines, a single point mooring, and trucking operations to distribute refined products throughout the island of Oahu, Maui, Hawaii, Molokai, and Kauai. It also leases marine vessels; owns and operates a crude oil pipeline gathering system, a refined products pipeline, storage facilities, and loading racks in Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota.

PARR (Par Pacific Holdings, Inc.) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $3.03B, a trailing P/E of 6.45, a beta of 0.91 versus the broader market, a 52-week range of 18.82-70.39, average daily share volume of 1.5M, a public-listing history dating back to 2012, approximately 2K full-time employees. These structural characteristics shape how PARR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places PARR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.45 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a covered call on PARR?

A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.

Current PARR snapshot

As of May 15, 2026, spot at $58.59, ATM IV 59.80%, IV rank 57.93%, expected move 17.14%. The covered call on PARR below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.

Why this covered call structure on PARR specifically: PARR IV at 59.80% is mid-range versus its 1-year history, so the credit collected on a PARR covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 17.14% (roughly $10.04 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PARR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PARR should anchor to the underlying notional of $58.59 per share and to the trader's directional view on PARR stock.

PARR covered call setup

The PARR covered call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PARR near $58.59, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PARR chain at a 63-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 PARR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$58.59	long
Sell 1	Call	$60.00	$4.95

PARR covered call risk and reward

Net Premium / Debit: -$5,364.00
Max Profit (per contract): $636.00
Max Loss (per contract): -$5,363.00
Breakeven(s): $53.64
Risk / Reward Ratio: 0.119

Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.

PARR covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on PARR. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$5,363.00
$12.96	-77.9%	-$4,067.65
$25.92	-55.8%	-$2,772.31
$38.87	-33.7%	-$1,476.96
$51.82	-11.5%	-$181.61
$64.78	+10.6%	+$636.00
$77.73	+32.7%	+$636.00
$90.68	+54.8%	+$636.00
$103.64	+76.9%	+$636.00
$116.59	+99.0%	+$636.00

When traders use covered call on PARR

Covered calls on PARR are an income strategy run on existing PARR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

PARR thesis for this covered call

The market-implied 1-standard-deviation range for PARR extends from approximately $48.55 on the downside to $68.63 on the upside. A PARR covered call collects premium on an existing long PARR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether PARR will breach that level within the expiration window. Current PARR IV rank near 57.93% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on PARR should anchor more to the directional view and the expected-move geometry. As a Energy name, PARR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PARR-specific events.

PARR covered call positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. PARR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PARR alongside the broader basket even when PARR-specific fundamentals are unchanged. Short-premium structures like a covered call on PARR carry tail risk when realized volatility exceeds the implied move; review historical PARR earnings reactions and macro stress periods before sizing. Always rebuild the position from current PARR chain quotes before placing a trade.

Frequently asked questions

What is a covered call on PARR?: A covered call on PARR is the covered call strategy applied to PARR (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With PARR stock trading near $58.59, the strikes shown on this page are snapped to the nearest listed PARR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PARR covered call max profit and max loss calculated?: Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the PARR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 59.80%), the computed maximum profit is $636.00 per contract and the computed maximum loss is -$5,363.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PARR covered call?: The breakeven for the PARR covered call priced on this page is roughly $53.64 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current PARR market-implied 1-standard-deviation expected move is approximately 17.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a covered call on PARR?: Covered calls on PARR are an income strategy run on existing PARR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
How does current PARR implied volatility affect this covered call?: PARR ATM IV is at 59.80% with IV rank near 57.93%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.